Buying your first home in India is one of the most significant financial decisions of your life. This comprehensive guide walks you through every step of the journey — from planning your budget to getting your keys.
## Step 1: Know Your Budget
Before you fall in love with a property, understand what you can actually afford. A practical rule: your home loan EMI should not exceed 40% of your monthly take-home salary.
**Key costs to budget for:**
- Property cost (the sticker price)
- Stamp duty: 3.9% in Gujarat for women buyers, 4.9% for men
- Registration charges: 1% of property value (capped at ₹30,000 in Gujarat), but 0% for women
- GST: 5% for under-construction properties (no GST on ready-to-move)
- Home loan processing fee: 0.5–1% of loan amount
- Legal & documentation fees: ₹15,000–₹50,000
## Step 2: Verify the Developer
In post-RERA India, verifying your developer takes minutes. Check:
- RERA registration number (mandatory for projects over 500 sq m)
- Project completion history
- Litigation status on Gujarat RERA website
- Builder grade from credit rating agencies
## Step 3: Understanding Home Loans
Most lenders offer 80% LTV (Loan-to-Value) on residential property. You need to arrange the remaining 20% as a down payment plus the additional costs mentioned above.
- Last 3 years ITR + Form 16
- 12 months bank statements
## Step 4: The Legal Checklist
Never skip due diligence. Verify:
- Clear title deed (check last 30 years)
- Occupancy certificate (OC) for ready properties
- Building plan sanction from AUDA/AMC
- No-objection certificates
## Step 5: Registration & Possession
Once your loan is sanctioned and you've done due diligence, execute the sale deed at the sub-registrar's office. Bring two witnesses. After registration, conduct a thorough inspection before taking possession.
Property data, regulations, rates and availability can change. Verify legal, financial and project-specific information with qualified professionals before making a decision.